On August 31, Beijing time, LexinFintech Holdings (NASDAQ: LX), a leading new-consumption digital technology services provider in China, released its unaudited financial results for the second quarter of 2026. During the quarter, the company generated RMB 3.19 billion in revenue, achieved an EBIT of RMB 187 million on a non-GAAP basis, and facilitated RMB 55.4 billion in total transaction volume. Within the quarter, its diversified ecosystem businesses cultivated over several years demonstrated operational resilience, with the combined transaction volume from non-loan Origination segments—such as installment retail and B2B digital technology services—now accounting for over 50% of the total.

Specifically, the transaction volume for its installment retail division grew 6.3% quarter-over-quarter, while its B2B digital tech services business saw an 8% sequential increase. Cumulative registered users reached 253 million, up 1.4% from the previous quarter and 7.2% year-over-year. Notably, as AI applications deepened across operations, the company’s operational costs decreased by 17.6% quarter-over-quarter.

Lexin's CEO, Shawn Wenjie Xiao, commented on the results, stating, "We have always prioritized compliant operations. Facing industry challenges, we have proactively tightened risk management, strengthened cost and capital controls, and accelerated the application of AI across all business processes. Our ecosystem businesses, built over many years, continue to make positive progress, further showcasing our operational resilience. Looking ahead, we will adhere to regulatory guidance, steadily optimize our business layout, and promote the expansion of our accumulated technological, business, and operational capabilities. We will persist in strengthening our fintech capabilities to support long-term value creation. Despite ongoing industry uncertainties, we remain confident in the company's long-term development prospects."

Installment Retail Deepens its Ecosystem Roots to Support Essential Consumption

During the quarter, supported by the continued rollout of macroeconomic consumption-boosting policies and the steady recovery of domestic demand, Lexin's installment e-commerce platform, Fenqile Mall, leveraged its ecosystem and supply chain strengths to tap into multi-tiered consumption potential. By catering to consumers' quality needs, the platform contributed to the recovery of the physical retail market and supported the broader consumption growth landscape. Building on its long-term accumulation of users, brand partnerships, and product supply capabilities, the company refined its ecosystem and supply chain through collaborations with renowned brands, brand outlet sales, and private-label development. This strategy enriched the diversity of its consumption offerings. During the quarter, the company added roughly 440 new top-tier brand partners, with several achieving sales exceeding RMB 10 million shortly after collaboration began. Its brand outlet channel, focused on high-value-for-money items, secured nearly 20 new well-known brand collaborations. Furthermore, the launch of its first OEM private-label product has seen steady sales growth.

Aligning with the mid-year shopping surge, Fenqile Mall launched promotional campaigns such as the "New Trend Goods Festival," "May Day Travel Season," "520 Gifting Season," and the "618 Shopping Extravaganza." Through mechanisms like shopping credits, new-user subsidies, and lucky draws, these initiatives invigorated consumer spending. During the 618 period, the platform recorded a 28.14% sequential increase in transaction value, a 21.96% rise in transacting users, and a 32.8% growth in order volume, effectively satisfying consumers' diverse and quality-driven needs.

B2B Digital Technology Services See Rapid Growth and Achieve Economies of Scale

In the second quarter, Lexin's long-nurtured B2B digital technology business continued its robust growth trajectory, attaining profitability at scale. Leading internet platforms with extensive online ecosystems have accumulated vast user bases and consumption scenarios, making them primary traffic pools for licensed financial institutions seeking high-quality customers. As these major platforms pivot towards asset-light operations, traditional licensed institutions face a growing need for premium assets and precise customer targeting during their retail transformation. However, they often lack the necessary capabilities for traffic integration and scenario adaptation. This environment positions capable third-party fintech providers—including Lexin—as crucial intermediaries linking the "traffic side" with the "capital side."

Through its productized offering, Yunxi Technology PRO, Lexin systematically exports its core digital intelligence capabilities, serving licensed financial institutions and traffic platforms under regulatory guidance. On one hand, leveraging its experience from processing over a trillion RMB in credit transactions and its technological implementation expertise, Lexin deploys decision models, business strategies, and various asset credit enhancement models on a localized basis. This helps financial institutions optimize their operational frameworks, build more robust asset portfolios, and enhance the long-term quality and efficiency of their retail credit operations. On the other hand, it assists traffic platforms in efficiently distributing and monetizing their traffic, fostering a mutually beneficial tripartite partnership. Given the current industry and regulatory landscape, this B2B digital tech segment holds significant long-term value. The company is committed to increasing investment in this area to further facilitate the digital transformation of financial institutions.

Accelerating Deep AI Integration Cuts Operational Costs by 17.6% Sequentially

Throughout the second quarter, Lexin accelerated the deep application of AI across all business functions, yielding substantial results in cost reduction and efficiency gains through full-chain AI integration. In AI-assisted manual review, the technology now automatically consolidates all available user qualification data to generate standardized risk assessment reports. This reduces reliance on manual experience, enhancing both the efficiency and accuracy of risk identification. In the realm of intelligent agents, the company's strategy agents were expanded to new use cases this quarter, including assisting in the generation of risk control strategies, identifying fraudulent activities and malicious behavior (often termed 'black/grey production'), and formulating clearing strategies. These agents automatically mine risk features and generate strategic rules, which improves risk detection accuracy while simultaneously decreasing the probability of mistakenly blocking legitimate users. To date, Lexin has deployed over 100 AI agent positions across its operations, covering core business areas like intelligent strategy generation, compliance verification, post-loan management, and smart customer service. This tech-driven approach achieves the dual objectives of cost reduction and efficiency enhancement, ultimately strengthening the company's overall risk management and stable operations. Furthermore, Lexin is exploring the productization and modularization of its mature AI capabilities. By offering these standardized, replicable technological services to financial institutions via its B2B digital tech business, the company aims to unlock greater commercial value from its technological advantages, providing a more solid foundation for its strategic transformation. The continuous implementation of AI has significantly contributed to cost reduction goals, with operational costs falling 17.6% quarter-on-quarter. The company anticipates further reductions in operational costs for the third quarter as AI technology continues to be more deeply integrated.

Digital Tech Infuses the Entire Consumer Protection Lifecycle to Improve Services and Governance

Lexin consistently adheres to compliance as its foundation and leverages data-driven technology to refine its consumer protection framework. In the second quarter, the company utilized its industry-leading AI to upgrade its consumer protection mechanisms in areas such as institutional systems, technological empowerment, ecosystem governance, and intelligent services. This commitment aims to foster the synergistic development of both business and social value. During the quarter, Lexin continued to enhance its user service and care capabilities. Improvements in large language model semantic understanding and long-text logical reasoning have enabled more precise identification and response to user needs, continuously optimizing the service experience. Several core service metrics have maintained a positive trajectory. Concurrently, the company employs model-based user behavior analysis and tiered management, offering differentiated services and care to various user segments, which has further improved user experience and satisfaction. Extending its consumer protection efforts from internal risk control to broader ecosystem governance, Lexin has deepened its "technology plus police" collaboration model to precisely identify and combat various financial 'black/grey' illegal and non-compliant practices. During the quarter, responding to regulatory calls, the company publicly solicited leads on financial-related illegal and non-compliant activities. To date, it has received nearly 22,000 tip-offs, with several leads assisting the police in filing and investigating cases. Given the massive volume and complexity of this intelligence, Lexin utilizes its specialized anti-fraud agents, applying artificial intelligence for information extraction, risk identification, and relationship mapping. This facilitates an intelligent upgrade from tip-off discovery and case analysis to risk resolution, transitioning the fight against financial crimes from solely human expertise to technology-driven identification. Over the past two-plus years, Lexin has collaborated with police in deep-level crackdowns on financial crimes, working with authorities in Shanghai, Zhejiang, Jiangsu, Jiangxi, Hubei, and other regions to solve nearly one hundred related cases and dismantle 26 specialized criminal syndicates. Looking forward, the company will leverage its anti-crime initiatives to further strengthen police-enterprise cooperation, delivering firm blows to financial crimes and jointly fostering a clean and orderly financial ecosystem.